Greenhouse gas emissions

As one of the leaders in the Russian oil industry, Gazprom Neft is aware of its responsibility to preserve the environment for present and future generations. The problem of climate change reinforces the importance of this issue and activities to reduce emissions at the company and national level. The Company is developing a programme to increase the utilisation of associated petroleum gas at all its production assets.

The Company monitors greenhouse gas emissions generated by its operations. Emissions are assessed based on the following aspects:

direct greenhouse gas emissions related to the flaring of hydrocarbon fuel and substances, the operation of production facilities and process losses;

Greenhouse gas emissions (mn t of СО2 -equivalent) CO2 -equivalent (CO2 -equ., CO2e) is a unit used to measure the potential global warming of greenhouse gases. Carbon dioxide is the standard used to estimate all other greenhouse gases.

Indicator

2013

2014

2015

2016

Greenhouse gas emissions, including:

13.3

12.4

12.7

16.2

direct greenhouse gas emissions

11.8

11.1

10.7

13.8

indirect greenhouse gas emissions

1.5

1.3

2.0

2.4

Key projects to increase the level of effective APG utilisation in 2016

Yamalo-Nenets Autonomous District: the ongoing construction of Russia’s largest complex gas treatment plant (CGTP) at the Novoportovskoye field. The plant compresses, purifies and dries APG by reinjecting it into the pay zone.

Up to 99% APG utilisation level at the Yety-Purovskoye, Vyngayakhinskoye and Volyntoyskoye fields.

Orenburg Region: construction of a compressor station at the Eastern section of the Orenburg oil and gas condensate field to transport APG to the Orenburg Gas Processing Plant.

Design capacity: up to 6 billion m3 of gas per year.

APG utilisation level: at least 95%.

Tomsk Region: commissioning of a gas turbine power plant at the Shinginskoye field, which uses its own electricity to supply all the power required by oil and gas production, processing and transport facilities at the Shinginskoye group of fields.

Capacity: 24 MW.

APG utilisation level: at least 75%.

Total greenhouse gas emissions amounted to 16.2 million tonnes of CO2 -equivalent in 2016, a 27.5% increase from the previous year. The growth in greenhouse gas emissions in 2016 is due to the commissioning of new major fields at which APG utilisation infrastructure will be built in subsequent reporting periods and also due to an increase in heat and electricity consumption as a result of the unusually cold winter. Gazprom Neft also continued implementing projects to increase the level of effective APG utilisation in 2016.

Implementing programmes to increase the effective utilisation of associated petroleum gas at production assets is one of the Company’s strategic goals. Building the required infrastructure and facilities significantly reduces greenhouse gas emissions during the full-scale development of assets while increasing the efficiency of hydrocarbon production.